Correlation Between Multi Medika and Grand Kartech
Can any of the company-specific risk be diversified away by investing in both Multi Medika and Grand Kartech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Multi Medika and Grand Kartech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Medika Internasional and Grand Kartech Tbk, you can compare the effects of market volatilities on Multi Medika and Grand Kartech and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Multi Medika with a short position of Grand Kartech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and Grand Kartech.
Diversification Opportunities for Multi Medika and Grand Kartech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multi and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and Grand Kartech Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Kartech Tbk and Multi Medika is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Multi Medika Internasional are associated (or correlated) with Grand Kartech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Kartech Tbk has no effect on the direction of Multi Medika i.e., Multi Medika and Grand Kartech go up and down completely randomly.
Pair Corralation between Multi Medika and Grand Kartech
If you would invest 5,000 in Multi Medika Internasional on September 1, 2024 and sell it today you would earn a total of 2,500 from holding Multi Medika Internasional or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Medika Internasional vs. Grand Kartech Tbk
Performance |
| Timeline |
| Multi Medika Interna |
| Grand Kartech Tbk |
Multi Medika and Grand Kartech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and Grand Kartech
The main advantage of trading using opposite Multi Medika and Grand Kartech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, Grand Kartech can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Grand Kartech will offset losses from the drop in Grand Kartech's long position.| Multi Medika vs. Gozco Plantations Tbk | Multi Medika vs. Integra Indocabinet Tbk | Multi Medika vs. J Resources Asia | Multi Medika vs. Bhuwanatala Indah Permai |
| Grand Kartech vs. Matahari Department Store | Grand Kartech vs. Multi Medika Internasional | Grand Kartech vs. Visi Media Asia | Grand Kartech vs. Bayan Resources Tbk |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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